Financial Crime World

Sudan’s Anti-Money Laundering and Counter-Terrorist Financing Law: A Close Look

Sudan’s stance against money laundering and terrorist financing gained significant attention with the enactment of the Anti-Money Laundering and Combatting of Terrorism Financing (AML CTF) Act on June 18, 2014. This article provides an in-depth look into Sudan’s crucial piece of legislation.

1. Criminalizing Money Laundering and Terrorist Financing in Sudan

  • Sections 35 and 36 of the AML CTF Act outlawed money laundering and terrorist financing activities, making them criminal acts.

2. Scope of Application

  • The AML CTF Act applies to natural and legal entities operating in various sectors, such as banking, real estate, mining, insurance, and legal professions.

Prohibited Activities

Money Laundering

  • According to Section 35, money laundering involves transferring, transporting, exchanging, acquiring, owning, possessing, or utilizing money to conceal its criminal origins or to help an accomplice.

Terrorist Financing

  • Section 36(1) of the AML CTF Act defines terrorist financing as providing money intentionally for committing a terrorist act or to a terrorist organization.
  • Section 36(2) considers certain activities as terrorist financing even if no terrorist attack occurred or funds were not directly used for one.

3. Required Intent

  • The AML CTF Act specifies various levels of intent—specific intention, knowledge, and constructive knowledge—each tied to different acts.
  • These levels are distinct and not interchangeable.

4. Penalties for Violation

  • Violating the AML CTF Act results in imprisonment for natural persons for five to ten years and a fine equal to double the amount of illegal money.
  • Corporate entities face fines up to SDG 500,000.

5. Extra-Territorial Reach and Additional Regulations

  • The AML CTF Act’s application is limited to standard conflicts of law rules.
  • Specific sectors or activities may be subject to additional registration and reporting requirements.

Compliance Obligations and Penalties

  • Businesses and professionals in targeted sectors must adopt protective rules and procedures for identifying clients and implementing the Know Your Customer (KYC) protocol.
  • Failure to comply with these obligations may result in fines, imprisonment, and FIU investigations.

6. Enforcement Authorities and Contact Details

  • The Undersecretary, Ministry of Justice, serves as the primary enforcement agent.
  • Their contact information:
    • Address: Justice Tower, Gamhuria Avenue, PO Box 302, Postal Code 11111
    • Phone: +249 183 764 168
    • Email: moj@mojj.gov.sd

This article offers a thorough examination of Sudan’s AML CTF Act—an essential element of the country’s legal framework—and its implications for businesses and individuals operating within the jurisdiction.